Ether’s price is positioning for more gains against the US dollar and bitcoin. ETH/USD must break $490.00 and stay above $440.00 to remain in an uptrend.
Ether’s price’s recent upward move above $440.00 is a positive sign against the US dollar.
ETH/USD is following a significant bearish pattern with current resistance at $490.00 on the daily chart.
ETH/BTC is correcting higher toward the 0.0720BTC resistance.
Technically, the daily chart indicators are recovering higher in the bearish territory.
Ether Price Analysis
This past week, Ether’s price declined heavily, settled below the $450.00 support level, and traded toward the $400.00 support. A low was formed at $405.29 before an upward correction was initiated.
ETH/BTC also faced a lot of selling interest, resulting in a weekly close below the 0.0750BTC support. The pair tested the 0.0700BTC support and is currently correcting higher toward the 0.0720BTC resistance.
Let’s start with the daily chart of ETH/USD to understand the last decline and the recent upward correction. The chart clearly indicates a bearish pattern inside a significant declining channel with current resistance near $490.00.
There were a few correction patterns formed, which faced hurdles near the channel’s bearish trendline. The price was rejected many times and declined to form new lows. The recent low was $405.29 and the price is again forming a similar correction pattern.
Therefore, there are two scenarios possible in the upcoming days. First, the price climbs further higher, tests the bearish trendline with current resistance at $490.00, faces rejection, and finally resumes its downward move.
The second one is a bullish scenario in which the price breaks the all-important bearish trendline and clears the $500.00 barrier to start a solid bullish wave. Overall, the next move in Ether depends on whether it succeeds in surpassing the $490.00-500.00 resistance zone.
Dropping down to the 2-hour chart of ETH/USD, the pair is trading nicely above the $440.00 support. It is currently consolidating gains and is preparing for the next move. A break above the $460.00 resistance could push the price toward $475.00 and $490.00.
On the flip side, a break below $440.00 may push the price back toward the $420.00 support, below which there is a risk of an extension to $400.00.
Monthly Resistance Levels
$500.00 and $620.00
Monthly Support Levels
$420.00 and $400.00
The RSI is correcting higher toward the 40 level.
The MACD is slowly moving back in the bullish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets
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